In this week's Market Movers Europe with Vivian Iroanya:
- Oil ticks up on US tightness, European imports
- Norwegian gas curtailments and maintenance
- Carbon volatility ahead as auction volumes fall
- Tensions heightened for Black Sea grains
Second-quarter results season wraps up this week, with BP reporting on Tuesday. So far, there’s been a theme of lower margins amid a lackluster recovery, with executives stressing the need to get tough on spending in the face of supply chain inflation.
However, oil prices are also reflecting the more optimistic tone in financial markets, helped by falling US gasoline and diesel inventories and increased US crude exports to Europe.
According to the Energy Information Administration, US crude oil exports reached an all-time high of 4.6 million barrels a day in the week to July 21.
On the European gas front, processing issues at the Norwegian gas field Dvalin are scheduled to conclude today, according to Gassco.
However, the field’s operator, Wintershall Dea, said last week that Dvalin was still "weeks away" from a full return, with ongoing maintenance works across the Norwegian Continental Shelf leading to higher European gas prices.
European carbon traders are bracing for more volatility in August, with auction supplies set to fall sharply due to reduced activity over the summer period.
Carbon prices under the EU Emissions Trading System continue to trade above Eur90/mt on renewed investor interest, supported by stable gas and power prices.
Last August, EU allowances rose to almost Eur100/mt amid a sharp drop in auction volumes.
And finally, grains traders will be keenly watching developments in the Black Sea region. Since the expiry of the Black Sea Grain Initiative on July 17, the attacks over the past two weeks to export routes at the Kerch Strait in Crimea and the Reni port on the Danube have kept tensions heightened, raising concerns over future shipments in the region.
I’m Vivian Iroanya, thank you for kicking off your Monday with S&P Global Commodity Insights.